Page 210 - DMGT104_FINANCIAL_ACCOUNTING
P. 210

( )
                                                                                     ( )
                                       Raw materials:                                2007            2006
                                                                                      46,000.00
                                                                                                      42,000.00
                                      Opening Stock
                                      Purchases                                      4,74,000.00     4,30,000.00
                                                                                     5,20,000.00     4,72,000.00
                                   Less: Closing Stock                                52,000.00       46,000.00
          Financial Accounting     Add: Material Consumed                            4,68,000.00     4,26,000.00
                                   Direct Labour                                     6,32,000.00     5,06,000.00
                                   Manufacturing Expenses                            2,84,000.00     2,42,000.00
                                                                                    13,84,000.00    11,74,000.00
                    Notes
                                   Valuation of Goods in Process of Stock:
                                   Opening of year                                    28,000.00       26,000.00
                                   Closing of year                                    32,000.00       28,000.00
                                   Increase                                            4,000.00        2,000.00
                                   Cost of Goods Manufactured                       13,80,000.00    11,72,000.00

                                   Solution:
                                                                Raj  Company  Limited
                                                   Comparative Statement  of Cost  of Goods  Manufactured

                                                             Amount          % of cost of       Increase (+)
                                                                            Goods Manf.         Decrease (-)
                                         Particulars
                                                          2007    2006     2007     2006    Absolute   Relative in
                                                          in 000   in 000                    in 000      %
                                    Raw Materials Used     468      426    33.91    36.35       +42      +9.86
                                    Direct Labour          632      506    45.80    43.17      +126     +24.90
                                    Manufacturing Expenses   284    242    20.58    20.65       +42     +17.36
                                    Total                 1,384    1,174   100.29   100.17     +210     +17.89
                                    Less Increase in
                                    Work-in-Progress         4       2      0.29     0.17       +2
                                    Cost of Goods
                                    Manufactured          1,380    1,172   100.00   100.00     +208     +17.75




                                      Task Calculate the cost of materials consumed from the following:

                                                                                                          ( )
                                     Opening stock                                                     11,500
                                     Purchases                                                        1,05,000
                                     Wages                                                              3,500

                                     Sales                                                            1,40,000
                                     Hint:   20,000

                                   4.  Comparative Statement of Working Capital: When two periods’ statement of working
                                       capital are compared, comparative statement of working capital is prepared. This statement
                                       depicts the absolute changes in the each element of working capital and the changes in
                                       total working capital also. The example of the comparative statement of working capital
                                       is given below:

                                   Illustration 3:  From the following balance sheets, prepare a schedule of changes in working
                                   capital.











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